NEW YORK, NY - JANUARY 14: People walk in front of the 5th avenue Apple store on January 14, 2013 in New York City. Responding to weaker than expected demand, Apple has cut orders for LCD screens and other parts for the iPhone 5 this quarter. Shares for the tech company fell more than 4 percent to $498.20 before the bell on Monday. Analysts see the slowing sales as evidence that the U.S. firm is losing ground to Asian smartphone rivals. Photo: Getty/Spencer Platt

Apple Inc. (NASDAQ:AAPL) reported third quarter (Q3) earnings on Tuesday, and while it missed on revenue, the company beat expectations on profit. Photo: Reuters

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Apple Inc. (NASDAQ:AAPL) on Tuesday reported a 6 percent rise in revenue for the recently completed quarter, slightly missing Wall Street expectations, but iPhone sales were still up for the second consecutive quarter.

The Cupertino, California, company reported that earnings per share in its third fiscal quarter, which ended June 28, were higher than expected at $1.28. Analysts had forecast $1.23 for the iPhone maker. Profit was $7.7 billion, more than analyst expectations for $7.47 billion.

Apple booked revenue of $37.43 billion, under the $38 billion that analysts expected. Wall Street expected Apple to rake in profits of $7.47 billion, and it was able to pull in $7.7 billion.

The company sold 35.2 million iPhones in the quarter, slightly less than the 35.3 million that analysts expected but a robust number nonetheless. IPad sales were more disappointing, as Apple only sold 13.3 million of the tablets, while analysts expected upwards of 15 million. The best sales news came from the company's former mainstay, Mac computers, as it sold 4.4 million, or 500,000 more than analysts expected.

Apple’s net profits rose 12.2 percent year-over-year, while its earnings per share rose 19.6 percent, caused by the company's stock buyback program. It gave the EPS a much bigger jump than the net income figure, nearly 20 percent, compared to a 12.2 percent rise in net income. Apple reduced shares outstanding by 6.5 percent in the third quarter.

The Wall Street Journal reported Tuesday that Apple had been “betting big” on larger displays for the iPhone, with a production run of 70 to 80 million, compared to a run of 50 to 60 million for the iPhone 5S and 5C in 2013. The report said two new iPhone 6 models, one with a 4.7-inch display, and another with a 5.5-inch display, are due for release by Dec. 30.

Apple was still trying to improve the 5.5-inch iPhone 6’s production, the report said, which is complicated by the use of in-cell technology. The iPhone 6 will incorporate the touchscreen technology, which allows displays to be thinner and lighter by incorporating the touch sensors into the LCD screen itself.